Criticism and threats to Federal Reserve independence have been building for some time in this administration. But it was taken to a new height on August 25, when Trump posted that he intended to fire Fed Governor Lisa Cook, a Biden appointee. According to our guest, Columbia Law Professor Lev Menand, this is a big deal that has created an immediate crisis. The Trump administration's argument is that it's firing Lisa Cook "for cause" due to allegations (and these are just allegations at this point) that she committed mortgage fraud. As Lev argues, these allegations alone can't justify the removal of someone in this position. We talk through the legal implications, the immediate path ahead, and what may ultimately be Trump's real aim when it comes to pressuring the Fed.
Read more:
Trump Moves to Fire Fed’s Cook, Setting Up Historic Fight
Powell Opens Door to Interest Rate Cut, Citing Labor Markets
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